A Story of Two Countries Biotechnology Industry Partners for the Global Market November 2007 28th Joint Conference of the Korea-Australia/Australia-Korea Business Councils

Strength of the Collaboration Biotechnology Business Models Strength of the Collaboration Case Study Summary and Future Vision 28th Joint Conference of the Korea-Australia/Australia-Korea Business Councils

1. Biotechnology Biotechnology is a broad term for a group of technology based on the application of Biological Processes Medicine Agriculture Food Environmental Management Medical Devices Energy, etc.. We need partners for the R&D and Investment. We need the substantial market for the self growing industry.

1. Biotechnology Mission Attract Global investment and development partners to add commercial value to Biotechnology and R&D. Develop key global market

2. Business Model Korea is the Gateway to Japan and China Capital Investment Commercial Packaging Market Accessibility Research Capability Strong links to Japan and China

2. Business Model Australia is the gateway to US and Europe High Level of Standard Guidelines Strong Research Platform Global Capital Links Vast Natural Resources Strong links to US and Britain

2. Business Model

3. Strength of the Collaboration Globalization Factors Pharma and big Biotech need broader Market Companies listing on multiple stock exchange market Venture capital investors need new opportunities New research based on vast amount of information through global internet connection Governments acknowledge that Biotechnology is major economic driving force for 21st Century Harmonizing regulations / FTA Increasing Number of Fusion Industries Global Market Size : U$91b Annual Growth Rate : 11%

3. Strength of the Collaboration Korea R&D Expenditure : U$0.47 b (2005) Market U$2.3 b (2005) Australia R&D Expenditure U$0.60 b (2005) Market – U$1.7 b (2005) US R&D Expenditure U$14 b (2005) Market – U$47 b (2005)

3. Strength of the Collaboration International partnering will be crucial if we are to successfully transfer Australian technology to the global marketplace. by Dr Ian Edwards, Chair, AgBio Advisory Group, AusBiotech Ltd

4. Case Study MEDICANEX KOREA Production & Sales Sublicense Business World best production infrastructure Competitive quality & Price Global sales network - major 45 countries Technology License MEDICANEX Sublicense Business Australia Value add to the stagnated Australian sugar market * Governmental Benefit (Funding, Tax) * Cooperation - Sugar Plant & Farm (Raw Materials , Infrastructure, etc) Sublicense

4. Case Study Various trials to make Xylitol Sugar cane Bagasse Film of white birch : Limited supplies, Low productivity, Destruction of forest Heart of corn : Decreasing supplies after being the source of bio ethanol Sugar cane, Bagasse, Film of coconut etc : They are about to be used as new source Sugar cane Bagasse Film of White Birch Heart of Corn Film of Coconut

Required quantity of bagasse 4. Case Study Confidential Competitive Location and Infrastructure The most crowded locations of sugar manufacturing companies in Australia No.1 production location of Sugar cane in Australia * Space of sugar cane : 400,000 ha * Annual production of sugar cane : 36,000,000 tons * Annual production of bagasse : 4,000,000 tons Required quantity of bagasse 102,270 tons initially (2.5%) Purchasing cost : 40 AU$/ton

Capacity for growing Market + Competitiveness of Products 4. Case Study Partnership with big customers Rise of land value (Plant Location) Success of Business Capacity for growing Market + Competitiveness of Products Korea AUSTRALIA Experience & Know how Raw Materials Technology ·Stable source of raw material Low unit price Cost reduction ·Environment Protective Stability of organism High yield rate of production Ability to commercialize ·Best team members Experience of xylitol production Know-how on Ferment& Material Industry Global sales network Brand recognition Good quality of Infrastructure Support of Australian Government Ability to fund raising

4. Case Study KOREA China Japan Market US EU Market Australia Regulatory Sales and Marketing Partnering Localisation BioKOREA Solagran Unitract QCTN… US EU Market Regulatory Manufacturing Marketing Commercial Packaging Ausbiotech Australia SK Chemicals Purimed Body tech…

5. Summary and Future Vision Essentials Sales and Marketing Pathway Funding Pathway R&D Flow Patience /Patience / Patience Global Market Partnering Expansion Team Work Fusion Everywhere Industrial Fusion Science Fusion Country Fusion

Thank You !